Eagle Ford Shale fleet, commercial truck sales impact area dealers

Gunn Chevrolet has one salesman who racks up the mileage in South Texas, traveling full-time around the Eagle Ford Shale to drum up sales of pick-ups.General Motors recently named the dealership, located in Selma just north of San Antonio, as its leading commercial and fleet dealer in the nation, due in part to business from the shale play.

Gunn Chevrolet, of course, isn't the only local dealership seeing a boost from the oil and gas industry in South Texas. Many dealers are dedicating more employees and marketing resources to commercial and fleet vehicle sales and services in the region.

Gunn has seven salesmen and a portion of its mechanics in the service center dedicated to strictly fleet and commercial dealings, said Charley O'Daniel, Gunn Chevrolet's general manager.

“It's a relationship business,” said Sean Gunn, Gunn Automotive Group's chief executive. “You need the personnel to be able to take care of your clients, and you have to make that commitment.”

The entire commercial and fleet industry has changed because of the boom in the shale region, said Mike King, sales director at Grande Trucking, another area dealership. Still, while sales have been bolstered, the majority of large oil and gas companies buys vehicles near their headquarters and brings them to the Eagle Ford.

Parts and service are another matter.

“It hasn't been the windfall that everyone thinks it's been (in sales),” King said. “That's been the biggest impact, the parts and service to keep the vehicles maintained in the oil field.”

Having dedicated service staff is important to fleet and commercial buyers, including those in the Eagle Ford area, because of the cost to companies, O'Daniel said.

“It can cost a company around $3,000 to $4,000 per day to have a vehicle down,” he said. “By having a dedicated team (available) to them when they pull up to the service drive, it's critical for them and their business.”

Service is also an important part of Jordan Ford's business in the Eagle Ford Shale, said Mike Davis, the dealership's commercial sales and service manager. Every Tuesday and Thursday, Davis takes his flatbed trailer to the shale region and picks up and delivers vehicles.

“There's always something on the trailer,” Davis said.

Davis has spent 24 years with Jordan Ford — in the last 21, he's run the service department. He says his work in the service side of the dealership gives him credibility with his Eagle Ford customers.

Most of his sales and service orders can be completed onsite by iPad, without having to travel and send paperwork back and forth between the oil fields and San Antonio, he saidO'Daniel said word of mouth also helps bring in Eagle Ford customers.

“If you service somebody really well down there, they're going to let their friends know 'Hey, when you're in the market, take your vehicle for service at Gunn, and they'll get you right in and right out,'” he said.